Financial support from the Chancellor is changing as of the October 31, and the new Jobs Support Scheme will replace the widely used furlough scheme for workers whose jobs are adversely affected by the coronavirus crisis. The new system will replace the coronavirus Job Retention scheme – commonly known as furlough.
The Jobs Retention Scheme was launched in March to cover 80 percent of workers’ wages.
After being gradually scaled back since the start of July, the furlough scheme included a 20 percent employer contribution and 60 percent from the government in October.
Workers still received 80 percent of their normal pay – regardless of where it came from.
But now the Chancellor has opted to change the financial support package – but what are the changes and who is eligible?
The Government pays two-thirds of each employees salary, up to a maximum of £2,083.33 a month per employee.
Employers will be asked to contribute toward national insurance and pensions but will not be required to give anything toward staff wages.
The government has also made available business grants of up to £3,000 a month open to companies in Tier 3 areas.
Ministers have also pledged to provide support to local authorities for helping businesses in their local areas.